North Carolina-based MG Foods Inc. is considering expanding into Melbourne, creating 95 jobs over the next three years, most of them in production.

The food production, packaging and distribution company also proposes spending a total of $2.3 million to renovate a more than 30,000-square-foot unoccupied building at 685 Atlantis Road for its project and related equipment.

The news comes as the Space Coast's unemployment rate continues to drop. Florida's Department of Economic Opportunity on Friday said the area's jobless rate fell to 3.8 percent in February from 4.6 percent a year earlier.

Employees of North Carolina-based MG Foods Inc. prepare sandwiches for distribution to the company's clients. MG Foods is considering expanding into Melbourne, creating 95 jobs over the next three years.(Photo: PHOTO COURTESY OF MG FOODS INC)

The number of people with jobs in Brevard County rose by more than 3,800 over that 12-month period.

Overall, Florida's unemployment rate in February was 3.9 percent.

As for MG Foods' plans for Melbourne, it has applied for property tax breaks from Brevard County as part of its proposed expansion.

The incentives — which would have to be approved by the Brevard County Commission — could total as much as $9,930 a year for 10 years, or a total of $99,300, according to an analysis prepared by Economic Development Commission of Florida's Space Coast. Under this plan, if the project goes forward, MG Foods would pay $14,343 a year in new taxes to the county, or $143,430 during that 10-year period.

Employees of North Carolina-based MG Foods Inc. prepare food items for distribution to the company's clients. MG Foods is considering expanding into Melbourne, creating 95 jobs over the next three years.(Photo: PHOTO COURTESY OF MG FOODS INC)

Matthew Gallins, who is a co-owner and corporate secretary of MG Foods, said his company makes private-label fresh food products for a wide range of clients, including office buildings, factories, convenience stores, universities, airports and hospitals, as well as for vending machine companies.

It currently employs 135 people at a facility in Charlotte, North Carolina, and 95 at a site in Longview, Texas.

MG Foods proposes creating 83 production jobs paying $12 an hour and six driver jobs paying $17 an hour for its Melbourne facility. The company also would employ a $90,000-a-year operations manager and five $45,000-a-year supervisors based in Melbourne.

Its products would be distributed throughout Florida, Gallins said.

In documents submitted to the Brevard County Commission, MG Foods said: "Based on existing relationships with clients at our current facilities, we decided Central Florida would be an excellent geographic location for production and distribution of our products in Florida."

Employees of North Carolina-based MG Foods Inc. prepare food items for distribution to the company's clients. MG Foods is considering expanding into Melbourne, creating 95 jobs over the next three years.(Photo: PHOTO COURTESY OF MG FOODS INC)

The company, which was created in 2007, also is considering sites in the Orlando and Tampa areas.

Gallins said the company's facilities may prepare and ship out as many as 300 different types of food items in a single day for retail sale the following day.

Among the popular items are burgers, sandwiches, breakfast sandwiches, salads, wraps and burritos.

The menu items are "tailored to the customer," Gallins said, with the selection in a blue-collar factory different than that in a hospital, for example.

"This is not one-size-fits-all," Gallins said.

Some regional favorites are fried bologna sandwiches in North Carolina and brisket in Texas.

The Economic Development Commission estimates that the 95 jobs MG Foods would create in Melbourne would lead to 74 spinoff jobs. The 169 direct and spinoff jobs would have a total payroll of $6.27 million a year.

The company estimates that its Melbourne facility would generate $2 million in sales in its first year of operation, $4 million in its second year and $6 million in its third year.

An Economic Development Commission advisory board, called the Ad Valorem Tax Abatement Council, will make a recommendation on Wednesday to the Brevard County Commission on the incentives. The County Commission will consider the recommendation as early as April 10.

In a preliminary action, the County Commission on Tuesday voted 4-1 to qualify MG Foods as an eligible business under the county's tax abatement program and to authorize a public hearing on the incentives. County Commissioner John Tobia voted no.

In a memo to Brevard County Manager Frank Abbate, Jennifer Hashagen, the Economic Development Commission's manager of business development, said her agency "is seeking to leverage the Brevard County ad valorem tax abatement program to help the client offset the cost of building improvements and equipment."

The company would need to meet its hiring and capital investment goals to qualify for the property tax breaks.

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